Asia300

Lotte Shopping Co., Ltd.

South Korea

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Sep 20, 2017
Prev close: 220,500
Sep 20, 2017
Market cap:
Market cap(USD):
6,943.74B
6,154.43M
Shares: 31.49M

Currency in KRW

Company profile

Market(Ticker): KRX(023530)
Sector:
Industry:
Retail Trade
Department Stores
Full time employees: --

Business summary

Lotte Shopping Co., Ltd. engages in the operation of department stores and supermarkets. It operates through the following business divisions: Department Store, Discount Store, Supermarket and Cinema. The Department Store business provides clothing, accessories, appliances, furniture and food through Lotte Department Store. The Discount Store business offers food, household supplies, clothing and sundries through Lotte Mart. The Supermarket business provides general household products and fresh food through Lotte Supermart. The Cinema business offers film investment, distribution and screening through Lotte Cinema. The company was founded on July 2, 1970 and is headquartered in Seoul, South Korea.

Company background

Lotte Shopping is a major South Korean distributor with various sales channels, from department stores to large discount stores to home electronics retailers. It boasts the largest sales among South Korea's distribution-related listed companies.

The company is accelerating its overseas expansion, including in China, as stiff regulations at home make high domestic growth unlikely.

Most of the company's sales come from Lotte Department Store, Lotte Mart large discount stores and Lotte Hi-mart home appliance stores.

Lotte Shopping is the operator of 7-Eleven convenience stores in South Korea, and it also runs Lotte Super, a chain of small and medium-sized supermarkets, Lotte Cinema and a home shopping service. It offers financial services, as well.

Lotte Duty Free, the biggest duty-free shop in South Korea, is run by Lotte Shopping group company Hotel Lotte.

Given South Korea's aging population and declining birthrate, Lotte Shopping can expect little growth in its home market, especially as large discount stores and convenience stores are subject to strict regulations aimed at protecting smaller shops.

The company is focusing on developing new businesses, such as outlet malls. Its department store business has stalled as the result of changing spending habits among the aging society.

The major players in Lotte Shopping's overseas expansion are department stores and large discount stores. It is particularly expanding the latter in China, Indonesia and Vietnam.

While the company's overseas expansions are still in the upfront-investment phase, it plans to turn these operations into a growth pillar.

In the news

Financial highlights

Dec 2016

  • Local currency
  • US Dollar
Revenue 29,526.41B
Gross profit 8,422.80B
Operating income 934,143.64M
Income before tax 428,011.35M
Net income 155,345.63M
EBITDA 1,907.30B
Diluted EPS 5,246
Dividends per share 2,000
Total assets 41,915.90B
Total liabilities 24,920.98B
Total equity 16,035.41B
Operating cash flow 1,330.64B

Currency in KRW

Revenue 25,449.64M
Gross profit 7,259.84M
Operating income 805.16M
Income before tax 368.91M
Net income 133.89M
EBITDA 1,643.96M
Diluted EPS 4.52
Dividends per share 1.72
Total assets 34,704.34M
Total liabilities 20,633.36M
Total equity 13,276.54M
Operating cash flow 1,146.92M

Currency in USD

Valuation measures

Dec 2016

PER 42.13
ROA 0.37%
ROE 0.97%
Operating margin 3.16%
Profit margin 0.52%

Key executive

  • Vice Chairman & Co-Chief Executive Officer: In-Won Lee
  • President, Co-Chief Executive Officer & Director: Won-Jun Lee
  • Executive Director & Head-Operation: Gap Lee
  • Managing Director & Head-Operations: Ik-Woo Nam
  • President-Executive Board & Head-Operation: Gak-Gyu Hwang

Share holders

  • SHIN DONG-BIN(13.4%)
  • Hotel Lotte Co., Ltd.(8.8%)
  • SHIN DONG-JU(7.9%)
  • Lotte Confectionery Co., Ltd.(7.8%)
  • Lotte Trading Co., Ltd.(7.8%)
  • Lotte Shopping Co., Ltd.(6.1%)
  • National Pension Service of Korea(6.0%)
  • Lotte Data Communication Co.(4.8%)
  • Lotte Chilsung Beverage Co., Ltd.(3.9%)
  • Orbis Investment Management Ltd.(1.7%)

Address

  • Website: http://www.lotteshoppingir.com
  • Address: 81 Namdaemun-ro, Jung-gu, Seoul, 04533, South Korea
  • Phone: +82.2.771.2500

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